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Watch our webinar to hear about how the global debt crisis is impacting the lives of millions of people across the world.
Many of the world’s poorest countries have been plunged into a new debt crisis.
The number of low and middle-income countries in debt crisis has more than doubled since 2015: 54 countries are now in debt crisis compared to 22 countries in 2015. Despite facing significant poverty burdens, countries are having to make huge repayments on high-interest loans to wealthy banks, institutions and governments, leaving them unable to properly fund essential services.
In many countries, debts are being paid at the expense of hiring doctors and teachers, building schools, hospitals and sewage systems, preparing for floods or coping with droughts. The amount that lower-income countries spend on debt payments has increased by 150% since 2011. This debt burden also leaves countries less able to cope with the increasing effects of climate change.
The UK has the power to tackle this
Because the majority of loans granted by big banks are governed by English law, the government could legislate to force lenders to stop demanding payments from countries facing a debt crisis.
As record sums of money flow from the poorest nations to line the pockets of the world’s biggest banks, we need to take a stand.
Sandun Thudugala from the Law and Society Trust in Sri Lanka
In Sri Lanka, debt is having a devastating impact
Sri Lanka’s debt crisis has contributed to 25% of the population living in poverty, up from 13% three years ago. In 2022, the government spent 35% of its revenue on paying back debts.
Sandun Thudugala from the Law and Society Trust in Sri Lanka, says, “A normal person has to bear the burden of this debt crisis. There is no medicine in hospitals and equipment is not available. Families don’t have enough food.”
The Bible teaches us that money lending is about accompanying vulnerable people, not about profiteering. But in our current global system, powerful banks make huge profits from the vulnerability of poorer nations.
Pope Francis has declared 2025 a ‘Jubilee year’, which in the Church is historically a time for cancelling debt and restoring equality. In a special message about the Jubilee year titled 'Spes non confundit', or 'Hope does not disappoint', in May 2024, Pope Francis said, "I ask that [affluent nations] acknowledge the gravity of so many of their past decisions and determine to forgive the debts of countries that will never be able to repay them. More than a question of generosity, this is a matter of justice.”
As we prepare for the Jubilee year, and approach a general election, we’re calling on political parties to address this by passing a ‘Debt Justice Law’ if they form the next government.
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Debt crisis FAQs
"Shouldn't all debts just be repaid?" Read the answer to this and other questions about the new global debt crisis.